Accounts Receivable Has a Balance of $32,000, and the Allowance

question 4

Multiple Choice

Accounts Receivable has a balance of $32,000, and the Allowance for Bad Debts has a credit balance of $3,000. The allowance method is used. What is the net realizable value of Accounts Receivable before and after a $2,100 account receivable is written off?

• A) $29,000; $29,000
• B) $26,900; $26,900
• C) $29,000; $26,900
• D) $26,900; $31,100

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Definitions:

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Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

Niche Markets

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